What must the coupon rate be on these bonds

Assignment Help Financial Management

Reference no: EM132006066

DMA Corporation has bonds on the market with 22.5 years to maturity, a YTM of 6.9 percent, and a current price of $1,057. The bonds make semiannual payments and have a par value of $1,000. What must the coupon rate be on these bonds? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Please show work along with financial calculator steps.

Reference no: EM132006066

Questions Cloud

Computer fan manufacturing business : If Mistral decides to enter the computer fan manufacturing business,

Statements regarding home equity loans : Which of the following statements regarding home equity loans are CORRECT?

Influence equilibrium interest rate in economy : Each of following is factor that may influence equilibrium interest rate in economy EXCEPT A. number of common stock shares which given firm has outstanding.

How much should they set aside monthly to afford remodel : Will they be able to afford the project in 10 years? If not, how much should they set aside monthly to afford the remodel in 10 years?

What must the coupon rate be on these bonds : The bonds make semiannual payments and have a par value of $1,000. What must the coupon rate be on these bonds?

Decline in returns on financial investments : There is a decline in returns on financial investments other than bonds. Other things being equal, this will cause:

Assuming market is in equilibrium : Assuming the market is in equilibrium, what does the market believe will be the stock price at the end of 3 years?

Computation of future values and present values : Computation of Future Values and Present Values. What is the present value of six receipts of $1,000 each received at the beginning of each period,

What is the firm horizon or continuing and value : What is the firm's horizon, or continuing, value? What is an estimate of Brandtly's price per share?

User Account

All Pages